MOS 3342 - Chapter 6.docx

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Department
Management and Organizational Studies
Course
Management and Organizational Studies 3342A/B
Professor
Linda Eligh
Semester
Winter

Description
MOS 3342  Monday February 25, 2013  Chapter 1-6 and appendix 314 – 329 from textbook, plus class handout and Harvard busienss review article “how leaders create and use networks” January 2007, and lecture content  Approx format: o M/C – 15 q @ 2 pts each 30% o T/F – 15 @ 1 pt each 15% o S/A – 5 q @5 pts each some with choice) 25%  3 q @10 pts each (some with choice) 30% Chapter 6 – Person-Based Structures Skill based structure  links pay to the depth or breadth of the skills, abilities, and knowledge a person differences between skill based and job based pay systems?  Compensation us based on the skill or skill units an employee is capable of performing rather than jobs  Mastery of skill units is determined through measurement and the certified  Individuals are paid for all the skills for which they have been certified, regardless of whether the work they are doing requires all or just a few of those particular skills (i.e. pay changes do not necessarily accompany work reassignment)  There is little emphasis on seniority when determining pay Skill based terminology  Skill path (category) o Grouping of related skill blocks of varying skill levels that represent all activities of a single job family or steps in a process; for example: balzer – ADMIN, SALES, TOOLS etc  Skill block o Grouping of skills, activities, or behaviours; for example: Balzer o Types – BASIC = 4 skill blocks  Skill o Smallest unit of analysis a specific statement of what a person does; soldering a circuit board Types of skill based pay plans  Specialist: in depth o Surgeon, French teacher  Generalist/multiskill-based: Breadth o Pay is based on the range of knowledge specific to a group of related job (administer, manager) Purpose of the skill based structure  Support the strategy and objectives  Support work flow  Fair to employees  Motivate behaviour toward organizational objectives “How to”: Skill Analysis??????????  Determining the internal skill-based structure  Basic decisions o What is the objective of the plan? o What information should be collected? o What methods should be used to determine and certify skills? o Who should be involved? o How useful are the results for pay purposes? Why use a skill based system? Could there be any disadvantages?  Potential effects of a skill-based system o Advantages  Higher productivity  Lower costs  Higher quality  Lower staffing levels  Lower absenteeism  Lower turnover  Improved relations with labour o Disadvantages  Average pay of employees likely higher  High labour costs if productivity increases do not offset additional costs  More complex system  Requires a major investment in training Person based plans  Competency based pay structure o Competencies  Underlying, broadly applicable knowledge, skills and behaviours that for the foundation for successful work performance  Independent of a job or position  Can be transported from one job to another Contrast of trait/behaviour based competencies Trait based  Self starter: o Likes to take initiative o Motivate to get exceptional results o
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